How to track Return, Credit, and Refund transactions
When things go south with sold items, they can usually be returned. A company needs to take the items back into inventory and usually give the customer some form of either Credit, to be applied against a future purchase, or a Refund. Each business decides on the right option for each of its items, depending on the conditions of the sale, the problem being reported by the customer, and other factors.
The process that is followed in NetSuite in cases like this will vary but generally follows this flow:
- If the company is using NetSuite’s customer service features, they might record a case record during a call or when the customer’s email is received.
- From this case, they can create a Return Authorization, indicating that they have given the customer the OK to return the product to them.
- Next, they might create a credit memo to show that the customer is due some portion of the money they paid...